Silicon Motion Technology (NASDAQ:SIMO) Shares Gap Down – Should You Sell?

Shares of Silicon Motion Technology Co. (NASDAQ:SIMO) gapped down before the market opened on Tuesday . The stock had previously closed at $56.30, but opened at $54.63. Silicon Motion Technology shares last traded at $55.66, with a volume of 38,675 shares.

Analyst Upgrades and Downgrades

SIMO has been the subject of several research reports. Wedbush reiterated an “outperform” rating and issued a $90.00 target price on shares of Silicon Motion Technology in a research note on Monday, December 23rd. Needham & Company LLC lowered their price objective on Silicon Motion Technology from $94.00 to $75.00 and set a “buy” rating on the stock in a research report on Friday, November 1st. Roth Mkm lowered their price target on shares of Silicon Motion Technology from $90.00 to $80.00 and set a “buy” rating on the stock in a report on Tuesday, October 8th. Susquehanna decreased their target price on shares of Silicon Motion Technology from $110.00 to $95.00 and set a “positive” rating on the stock in a research report on Friday, November 1st. Finally, Morgan Stanley cut their price target on shares of Silicon Motion Technology from $78.00 to $65.00 and set an “overweight” rating for the company in a research note on Monday, September 16th. One equities research analyst has rated the stock with a sell rating and nine have assigned a buy rating to the stock. According to data from MarketBeat, Silicon Motion Technology has a consensus rating of “Moderate Buy” and an average price target of $81.67.

Silicon Motion Technology Trading Down 0.4 %

The stock has a fifty day moving average of $54.93 and a two-hundred day moving average of $61.69. The stock has a market capitalization of $1.89 billion, a price-to-earnings ratio of 21.24, a PEG ratio of 1.61 and a beta of 0.80.

Silicon Motion Technology (NASDAQ:SIMO) last issued its quarterly earnings data on Wednesday, October 30th. The semiconductor producer reported $0.92 EPS for the quarter, topping analysts’ consensus estimates of $0.85 by $0.07. Silicon Motion Technology had a net margin of 10.90% and a return on equity of 11.52%. The firm had revenue of $212.40 million for the quarter, compared to analyst estimates of $209.49 million. During the same quarter in the prior year, the firm earned $0.32 EPS. The company’s revenue was up 23.3% on a year-over-year basis. Equities analysts expect that Silicon Motion Technology Co. will post 2.59 earnings per share for the current year.

Silicon Motion Technology Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, November 27th. Shareholders of record on Thursday, November 14th were given a $0.50 dividend. The ex-dividend date was Thursday, November 14th. This represents a $2.00 dividend on an annualized basis and a yield of 3.57%. Silicon Motion Technology’s payout ratio is 75.76%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. SG Americas Securities LLC raised its stake in shares of Silicon Motion Technology by 0.6% during the third quarter. SG Americas Securities LLC now owns 33,917 shares of the semiconductor producer’s stock worth $2,060,000 after buying an additional 197 shares during the last quarter. Inspire Advisors LLC increased its holdings in Silicon Motion Technology by 1.9% in the second quarter. Inspire Advisors LLC now owns 13,074 shares of the semiconductor producer’s stock valued at $1,059,000 after purchasing an additional 249 shares during the last quarter. Advisors Asset Management Inc. lifted its stake in Silicon Motion Technology by 129.4% in the third quarter. Advisors Asset Management Inc. now owns 445 shares of the semiconductor producer’s stock valued at $27,000 after buying an additional 251 shares during the period. Geode Capital Management LLC boosted its holdings in Silicon Motion Technology by 0.7% during the third quarter. Geode Capital Management LLC now owns 35,948 shares of the semiconductor producer’s stock worth $2,183,000 after buying an additional 253 shares during the last quarter. Finally, Sei Investments Co. increased its stake in shares of Silicon Motion Technology by 0.5% in the 2nd quarter. Sei Investments Co. now owns 56,296 shares of the semiconductor producer’s stock valued at $4,559,000 after acquiring an additional 257 shares during the last quarter. 78.02% of the stock is currently owned by institutional investors and hedge funds.

Silicon Motion Technology Company Profile

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. The company offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications.